Using data on prepaid cards for an online game listed on Taobao.com, this paper examines the impact of sellers’ reputation on their sales in China’s online market. It is found that sellers’ good reputation has a positive impact on their sales volume, but the marginal effect of this impact decreases severely. We also find that sellers’ affiliation with seller coalitions can increase their sales in a given period. Results show that individual and collective reputation can function well in the absence of mature law and social credit system related to online trade, and that private order can substitute public order in a market with immature laws as in China.
This paper compares the cumulative abnormal returns and operating performance of Chinese listed firms which made seasoned equity offerings or right issues at different profitability thresholds. Results show that both the average long-term and short-term cumulative abnormal returns of these firms increase significantly after the setting of thresholds. Moreover, the accounting performances of these firms are also improved to some degree. It implies that regulations on new equity raising behavior of listed firms are necessary and effective in protecting the investors and restricting listed firms’ “money encirclement” behaviors.
Based on the theory of cross-cultural management and organizational learning, this paper comparatively analyzes the role of culture differences between China and the Netherlands in organizational learning processes, climate, and capabilities. Three propositions are proposed to help multinational corporations (MNCs) build learning-oriented subsidiaries in China.
This article explores the relationship between management ownership and firm performance. Using the panel data of Chinese listed firms from 2000 to 2004 and the average model, we attempt to avoid some of the deficiencies in research design and performance indicator selection in prior studies. Results show that the proportion of shares held by top management is significantly and positively related to firm performance. Empirical tests of sub-samples in each year confirm the above conclusion.
This study explores the impact of corporate governance on financial control by studying manufacture industry. Results show that factors such as the percentage of shares held by the controlling shareholder, independent directors system, and the degree of activeness of the board of directors all have marked influences on financial control. Suggestions for financial management improvement are also discussed.
This paper proposes a model of network innovation based on resource integration drawing upon relevant literature on technology innovation. Through a case study of China Shenhua Energy Company Limited (Shenhua), it finds that in a high-velocity environment, technological innovation in enterprises becomes more external-oriented and network-oriented. The innovation patterns used in Shenhua mainly include hub and spoke
This paper studies the relationship between dividend payout and investor protection through the case of Chihong Zinc & Germanium’s (Chihong) reform of nontradable shares. Results show that Chihong’s nontradable share reform integrated with equity offering may usurp the interest of small shareholders. Statistics manifest that market responds negatively to this type of dividend allocation. Managerial suggestions are also provided.
This paper analyzes the evolution of Sinopec’s corporate governance system and performance in the domestic capital market after its overseas listing. Results show that Sinopec’s governance system successfully evolves from a mandatory type to a voluntary type as a result of conformation to legal regulatory systems in the overseas market as exogenous forces and company voluntary decision-makings as endogenous forces. Sinopec takes the initiative to carry out corporate governance innovation, which has significantly improved its performance in the domestic capital market.
This paper constructs an integrated model of international risk perception, and then conducts a pattern match to the model through a descriptive case study of Huawei. Huawei’s internationalization process is divided into three stages, namely challenging initial exploration, horizontal expansion and all-round expansion. The key risks and prevention measures at each stage are observed on the macroscopic level, industrial level and corporate level respectively, and the model base on an analysis of Huawei’s risk perception and prevention effort is tested. Implications and suggestions are discussed with regard to the management of internationalization risks for hi-tech enterprises.
